August 20, (THEWILL) – Since last December’s US-Africa Leaders Summit hosted by President Joe Biden in Washington, D.C and the US-Africa Business Forum organised by the US Commerce Department, no fewer than 75 new deals have been sealed between the United States and African countries . The deals are estimated to have been valued at a whopping $5.7 billion in two-way trade and investment. Now, the Biden-Harris Administration is stepping up its game to deepen trade and investment relationships with Africa through the Global Diversity Export Initiative Trade Mission to Ghana, South Africa and Nigeria even as the U.S. continues to identify new commercial opportunities as part of her commitment to the African continent. OLAOLU OLUSINA reports.
For two days, last week, the Under Secretary of Commerce for International Trade at the U.S. Department of Commerce, Marisa Lago, was in Lagos. The visit to Nigeria’s commercial city was her second visit to the country and the last lap of her just-concluded three-nation African tour which had earlier taken her to Ghana and South Africa in the past one week and a half. Under Secretary Lago, a top member of the Biden-Harris Administration, was also part of the US Presidential delegation to the inauguration of President Bola Tinubu in Abuja on May 29, 2023.
PRODUCTIVE AND PROFESSIONALLY ENRICHING VISIT
Describing her recent trip to Africa as highly productive and professionally enriching, Under Secretary Lago told journalists at a virtual media briefing, Wednesday, August 15, 2033, which was attended by this reporter, on the second day of her visit to Lagos, that she felt fulfilled.
“I am now at the conclusion of what has been a highly productive and professionally enriching visit to Africa, my fourth time on the African continent this year. For the past nine days, I’ve been leading the US Department of Commerce’s Global Diversity Export Initiative, or GDEI, Trade Mission, which has gone to South Africa, to Ghana, and to Nigeria, where we have been engaging with U.S. companies and African private sector leaders as well as my government counterparts.,” she said.
Under Secretary Lago was joined at the media briefing by the chargé d’affaires in charge of the US Mission to Nigeria, David Greene, who flew in from his station in Abuja, Nigeria’s capital city. Together, they discussed the US Department of Commerce-led Global Diversity Export Initiative Trade Mission to South Africa, Ghana and Nigeria, as well as the ongoing efforts to deepen the US-Africa trade and investment relationship while identifying new commercial opportunities as part of the US commitment to the African continent.
According to Lago, “The Biden-Harris administration has made a renewed commitment to deepening engagement across the African continent during – which was made during last December’s US-Africa Leaders Summit hosted by President Biden in Washington, D.C. Since then, there have been numerous high-level visits to the continent, including Vice President Kamala Harris, First Lady Jill Biden, Secretary of State Antony Blinken, Treasury Secretary Janet Yellen, US Ambassador to the United Nations Linda Thomas-Greenfield, and in the last month alone the CEO of the US Development Finance Corporation, Scott Nathan, and the head of the US Trade and Development Agency, Director Enoh Ebong, and Acting Deputy Secretary of State Victoria Nuland – a very high, sustained pace of senior-level government visits.
“So that said, our engagement or vision for deepened engagement with Africa entails a lot more than just high-level visits. We are laser-focused on delivering tangible results across all dimensions of our bilateral relationship, as well as our partnerships with subnational and pan-African institutions. And I’m pleased to report that if we look just in terms of trade and investment, since December’s leaders summit and the U.S.-Africa Business Forum that the Commerce Department organised, the Biden-Harris administration has helped close 75 new deals between the United States and African countries. We estimate that the total values of these deals result in $5.7 billion in two-way trade and investment.
“To underscore the Commerce Department’s role in this whole-of-government commitment, I’ll repeat what I said earlier: While my role is global in scope, this is my fourth official visit to the African continent since the beginning of this year. In February, I traveled to Tanzania, where I engaged with government officials and U.S. and Tanzanian CEOs, startups, and other local private sector leaders, where we discussed the business environment in that country.
“From Tanzania, I moved on to Zambia, meeting with President Hichilema, hosting a roundtable for women entrepreneurs, meeting with key government leaders from several ministries and helping to lay the groundwork for the signing of a memorandum of understanding – an MOU – on commercial development with Zambia. This MOU was formalized and signed shortly after Vice President Harris visited Zambia in March.
“Fast-forward to May, I traveled to Cairo to hold the inaugural meeting of the U.S.-Egypt Joint Economic Commission. There we established several areas to intensify our commercial cooperation.
“Later the same month, in the last days of May, I traveled to Abuja, Nigeria, as part of the U.S. presidential delegation to attend the inauguration of President Tinubu.”
LOVING LAGOS’ ELECTRIC PACE
On Tuesday, August 14, 2023, a day before the media briefing, Under Secretary Lago was the guest at the Microsoft Garage Electric Vehicle Hackathon, a gathering of industry stakeholders to brainstorm on the introduction of electric vehicles in Nigeria, a topic , she confessed, was of particular interest to her as, according to her, “I am proudly part of the Biden-Harris Administration, which is committed to combating the climate crisis and views EVs as critical technologies to facilitate the clean energy transition, creating new economy jobs in the process.”
However, Lago’s excitement did not end with the topic of the day, but with the city of Lagos itself and the energy therein, which she described as electric.
“I am also especially pleased to be in Lagos. While it is my second time in Nigeria, it is my first time in Lagos. As a native and resident of NYC, I am loving Lagos’ electric pace! The innovative energy in Lagos, and especially here at the Microsoft Garage, is palpable. And the results that flow from this energy won’t benefit just Nigeria, as ideas originated here (will) inevitably grow beyond the Garage’s walls and Nigeria’s borders. You will be an impact on the world,” she told her hosts.
Lago maintained that the US Department of Commerce views all these engagements as well as the GDEI Trade Mission “as important steps in continuing to deliver on the commitments that we made at last December’s US-Africa Leaders Summit and Business Forum,” even as she revealed that “this trade mission has brought over 20 US companies and organisations, mostly owned by members of the African diaspora in the United States.”
She added, “These companies are active in a wide range of sectors, starting with the information and communications technology sector, cybersecurity, electric vehicles, energy, trade facilitation, and consumer goods. ”
DEEPENING AND SUSTAINING US-AFRICA CONNECTIONS
The U.S Under Secretary continued: “While these US companies have been on this trade mission in Africa, the Commerce Department has arranged for them a robust series of tailored match-making opportunities with potential business owners – with potential business partners in these three countries. We have also introduced them to the decision-makers in South Africa, Ghana, and Nigeria.
“This trade mission serves as an example of how intentionally we’re working to deepen and sustain connections between U.S. and African companies. We see trade missions like these as a foundational means of business-to-business relationship building as well as an important mechanism to foster ties that lead to concrete trade and investment deals.
MITIGATING BARRIERS TO TRADE AND INVESTMENT
“Over the course of this trip, I’ve also advanced policy objectives aimed at aligning our US approaches with those of the governments of South Africa, Ghana, and Nigeria. What is the goal? To mitigate potential barriers that can hamper trade and investment. For example, in South Africa, I engaged with my government counterparts and private sector colleagues to explore potential solutions and opportunities in the infrastructure, healthcare, and ICT sectors with a special focus on supporting women in technology fields. In honour of South Africa’s National Women’s Day, I met with South African tech entrepreneurs at WomHub, which is a pan-African incubator for female founders in STEM – science, technology, engineering, and mathematics – where we discussed opportunities for early and mid-stage startups to find opportunities for advancement and to be able to scale up in the US market.
“I also met with several established women business leaders to learn from their experiences, to hear about their challenges, and also the opportunities that they saw in the South African market. In Accra, we participated in the inaugural US-Ghana Business Expo, which was hosted by the American Chamber of Commerce in Ghana. This expo featured a trade pavilion that was buzzing with exhibitors from the companies on our trade mission but also about an additional 20 US companies that already have a presence in Ghana, and they were able to showcase to the Ghanaian business community their innovative products and services. The US companies on this trade mission also held dozens of business-to-business meetings with Ghanaian companies to explore new business conversations.
“In my conversations with both the US private sector and my Ghanaian Government counterparts, we discussed the role that US companies can play in Ghana’s economic recovery and the importance of addressing business environment concerns, including settling significant arrears in payments to US critical infrastructure companies. We held discussions focused on commercial solutions to cybersecurity challenges and also scaling electric vehicle charging in Ghana. We also were able to bring together the distinguished heads of prominent U.S. black-led business chambers with the heads of chambers from underserved business communities in Ghana, where they were able to engage in relationship building, peer mentoring, and sharing best practices.
“Coming to my visit to Nigeria yesterday and today, I participated in an incredibly lively hack-a-thon that was hosted by Microsoft’s Garage, where we were focused on how to grow and promote the development of the electric vehicle, the EV industry. Microsoft’s Garage is a centre for company employees, customers, partners, and the public to collaborate in STEM fields.”
FOCUS ON DIGITAL ECONOMY
“There were conversations – I’m sorry. Across all of these countries that we visited, there was a consistent focus on the digital economy. I heard directly from my government counterparts and the private sector on the opportunities and challenges in the digital sector. These conversations with our African partners already are and are going to remain critical to advancing progress under the US’ Digital Transformation with Africa, or DTA. This is an initiative that President Biden announced at last September’s US-Africa Business Forum. DTA aims to expand digital access and literacy, and also to strengthen the digital-enabling environments across Africa, all in line with the African Union’s Digital Transformation Strategy and the US Strategy Towards Sub-Saharan Africa. ”
WOMEN IN TECHNOLOGY
“I’ll also want to note that today, I was delighted to facilitate a discussion with a group of leading Nigerian women in technology. It was graciously hosted at 21st Century Technologies, a digital infrastructure and services company. We discussed best practices for increasing access for women entrepreneurs to venture capital and other resources, to overcome the historic challenge of gross underinvestment in women-owned and women-led businesses. During our discussion, I was heartened to see the strong relationships already being formed among our trade mission participants and Nigerian entrepreneurs, fostering deeper commercial collaboration and uplifting women in our communities.
“As we move forward, the US Commerce Department is going to continue bringing US companies to the continent, engaging in these critical dialogues – which will foster an enabling environment for increased trade and investment – and also working towards our shared goal of mutual economic prosperity for citizens of both of our nations.”
Reacting to a question on the criteria for choosing Ghana, Nigeria and South Africa for the Trade Mission, Under Secretary Lago said: “When we selected the particular countries for this trade mission, we were looking to ensure that we included some of the largest economies on the African continent. We wanted to make sure that we selected countries whose economies had a strong presence in sectors that had strong prospects for U.S. companies, where there was the ability to match up the U.S. companies on this trade mission with companies in those countries.
“I’ll also note that we were joined on this trade mission by some of the leading chambers, business organizations, that represent the black community, the Native American/Indian community, and the woman-led business community. So through these trade missions, we are reaching thousands of other businesses in the U.S.
“The other thing that we did is we reached out to the Commerce Department’s strategic partners to ask them where they thought there would be opportunities for the trade mission’s participants who came from historically underserved communities.
“Now, as I mentioned, we are already looking forward to future trade missions, and we will continue looking to visit other countries on the continent as well. Our mission is to support the competitiveness of US businesses and their workers, and this includes micro, small, and medium-sized enterprises and also tapping into the very strong African diaspora which we have in the United States and which is a source of our strength and also a point of pride.”
BUILDING BRIDGES TO GLOBAL MARKETS
On how long the Global Diversity Export Initiative has been running and how many US companies have benefited with the current value of US exports to Africa, Under Secretary Lago said: ” The Global Diversity Export Initiative is relatively young. It’s under two years old. And I’ll note that this trade mission that you’re seeing is just one portion of the initiative. It’d like to highlight a number of – another facet of it which we call Building Bridges to Global Markets. And under that initiative, by the end of this year, we will have sent teams of trade experts from Washington to 17 locations within the US, and these are to locations that have historically underserved communities. And we go there to be able to spread the word about the programming, the resources that are available. And rather than requiring small businesses to go to the time and expense of coming to us in Washington, we go out to the communities. Yes, we explain the resources that we have at the Department of Commerce. But as importantly, we listen to the needs of the businesses in these communities that may be thinking about exporting.
“I should note that within the Department of Commerce and in particular within the International Trade Administration that I have the privilege of leading, we have trade experts deployed in over 100 locations within the United States. Yes, the big cities that everyone knows of on the coast but also throughout the heartland of the US, including in rural locations. And these trade experts are charged with understanding the local business, the local businesses in their geographies, working with the existing exporters but, as importantly, tapping into the businesses that are doing just fine within their communities, within their states, but have the opportunities to go global.
“These 100 locations in the US are paired with over 80 global locations where similarly we have trade experts. Speaking of Nigeria, where I am located now, we have a Foreign Commercial Service presence here in Lagos and, and as I said, in 80 different locations. There we have Foreign Commercial Service officers who are US citizens, but we also very significantly hired locally employed staff who themselves are of the country and understand the business community, have a deep-seated understanding of the needs of their countries. And it is through these two teams around the globe and in the US that we are able to make the connections.”
ATTRACTING FDI INTO THE USA
“If I might add one thing with respect to commercial relationships, I’ll note that in addition to focusing on enhancing the competitiveness of US exporters, we also at the Department of Commerce work on attracting foreign direct investment into the US. And every year, we hold a Select USA Investment Summit near Washington DC. This is a major undertaking. This last year, we attracted 4,900 participants from over 80 different countries around the globe.
“These investors range from the largest sovereign wealth funds to multinationals from other countries but, importantly, also tech investors in startup countries around the globe who saw the potential to expand into the vibrant and large U.S. market. And if I might note that one of the largest delegations came from right here in Nigeria; I had the pleasure of meeting with this delegation, and it was comprised of some of the country’s most innovative companies.
“By coming to Select USA, they were able to hear from the President, President Biden; they were able to hear from six different US cabinet secretaries; and importantly, they were able to meet with the economic development organizations from all 50 states. And so this truly was a one-stop shop for making connections between Nigeria and also the delegations from the other countries from the African continent and the opportunities that abound in the United States. ”
TECH AT THE FOREFRONT
“In each of the three countries that we visited on this trade mission, tech was very much front of mind. And when we talk about tech, it is such a broad field. It ranges from clean energy tech, it encompasses fintech, agritech, health tech. And you are correct that no one country has a lock on it. I’ll also note that when people think of tech in the US, it is way too easy to think of just Silicon Valley, Boston, and New York City. That is not the reality. We have tech hubs, vibrant tech hubs, across the United States. When people talk about the digital future, the tech future, I think it’s important to realize, yes, it’s the future but it’s here right now. The opportunities are here right now.”
Chargé d’Affaires Greene also corroborated Under Secretary Lago’s comment on the attention to tech during the Trade Mission. Citing the case of Nigeria, Greene said, “Obviously, Nigeria is an enormous and diverse country and with opportunity and potential everywhere, and it’s certainly part of what we consider our mission to take advantage of every opportunity we have to get out to the different states and the different regions to understand what’s happening, especially in the tech sector, which, as was pointed out, is sort of everywhere. And Lagos is, of course, the hub for so much economic activity, but with such a vibrant and creative and innovative youth population in Nigeria, tech opportunities are everywhere in the country. And we certainly seek them out and try to direct US businesses and investors to them wherever we may find them.”
ENDURING PARTNERSHIP WITH NIGERIA
Chargé d’affaires, US Mission to Nigeria, Greene, commented generally on what he described as his country’s commitment to enduring partnership with Nigeria even as he highlighted the objectives and importance of the Global Diversity Export Initiative
“This is a very exciting time in the US-Nigeria bilateral relationship, especially on the economic front, with the Tinubu administration taking and undertaking some of the structural changes that we think will create the foundation for new influxes of US capital investment and increase two-way trade with Nigeria, and we’re already seeing a renewed interest by U.S. businesses and investors as well as other international investors,” Greene said.
“Nigeria’s home to Africa’s largest democracy, population, and economy, and we really believe that Nigeria’s economic growth will bring stability and prosperity not only for the Nigerian people but also across West Africa, where Nigeria is such an economic heavyweight, through cross-border expansion and economic integration, including under the African Continental Free Trade Area.
”So the United States remains committed to an enduring partnership with Nigeria, one centered on our aspirations for shared prosperity and mutual economic growth.”
On the Global Diversity Export Initiative, Green said: “Our Africa policy is about Africa… and the trade mission and Under Secretary Lago’s presence here today speak to the focus that we’re putting on our whole-of-government follow-up to the U.S.-Africa Leaders Summit and our commitment to drive intensified engagement on the economic front for the benefit of the people of Africa and our partner nations and for the United States, of course.”
RESTATING COMMITMENT TO AFRICA’S ECONOMIC GROWTH
THEWILL recalls that just four days before Under Secretary Lago’s visit to Lagos, the US Consul General, Will Stevens, had restated the US’ commitment to Africa’s economic growth, maintaining that the commitment informs the steadfast focus to fostering economic growth across the African continent .
Stevens, who spoke on August 10, at the Eko Hotel, Lagos, venue of the Africa Social Impact Summit 2023, which had, ‘Global Vision, Local Action: Repositioning the African Development Ecosystem for Sustainable Outcomes’, as theme, also shared examples of America’s support to Africa’s economic development.
According to Consul-General Stevens, “At the heart of the United States’ commitment to Africa lies a steadfast focus to fostering economic growth. The African continent is dynamic, chock-full of untapped potential, from its people to its vibrant innovative and entrepreneurial spirit and her vast natural resources. Recognising this, the United States envisions a future where economic growth is inclusive, sustainable, and far-reaching. Through increased trade and investment in sectors such as agriculture, technology, and infrastructure we hope create jobs, boost innovation, and elevate the living standards of millions of Africans.
AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA)
“Through initiatives such as the African Growth and Opportunity Act (AGOA), the United States has played a pivotal role in fostering two-way trade relationships that empower African economies and communities. By providing duty-free access to US markets for eligible African nations including Nigeria, AGOA has paved the way for enhanced market access and economic diversification. Since its enactment in 2000, AGOA has facilitated a staggering $1 trillion in total trade. This is not just a number; it’s a testament to the fact that AGOA has contributed to the growth of industries across the African continent.
PRESIDENT’S EMERGENCY PLAN FOR AIDS RELIEF (PEPFAR)
“The United States’ commitments to Africa extend to healthcare and human capital as well. Through initiatives, such as the President’s Emergency Plan for AIDS Relief (PEPFAR), the US government has invested over $100 billion in the global HIV/AIDS response, the largest commitment by any nation to address a single disease in history, saving 25 million lives! In addition, the United States has collaborated with African governments and organisations across the continent to bolster healthcare infrastructure, advance maternal and child health, and combat malaria, as well as other infectious diseases. These endeavours have not only saved lives but also nurtured a foundation of human capital that propels economic growth.”
Maintaining that he believes deeply in the power of people-to-people connections, Stevens said “they underpin the strength of our relationship with the continent.
“For example last year, Nigeria joined the top ten countries in the world in sending students to the USA. Many of these are graduate students who have finished a degree here in Nigeria. When these students complete their degrees, they come home with connections to research institutions in the USA, ties to investors, and connections to business partners. It sows the seeds of economic growth and is visible in nearly every industry from government to tech to agriculture to manufacturing – US educated and trained Nigerians are leading the economic growth that is powering the transformation of the economy.
“No vision of progress can be complete without the active participation and empowerment of women and youth. We are committed to promoting gender equality, women’s rights, and youth empowerment across the African continent. Through targeted initiatives, mentorship programs, and investments in entrepreneurship, the United States aims to unlock the potential of these demographics, allowing them to contribute fully to their nations’ growth and development.
PROMOTING PEACE, DEMOCRACY AND SECURITY
“Stability is the bedrock upon which societies thrive and the United States is resolutely dedicated to promoting peace, democracy, and security in Africa, recognising that sustainable development can only occur in an environment free from conflict and instability. Whether through peacekeeping missions, counterterrorism efforts, or capacity-building programs for security forces, we are dedicated to forging partnerships that contribute to a safer continent. This includes our joint efforts to address the vulnerabilities of African nations to the devastating effects impacts of climate change and strengthen the continent’s climate resilience.
“Following a recent visit to Nigeria by our top energy diplomacy official, we announced the formation of an Energy Security Dialogue with Nigeria to advance collaboration on our shared energy and climate goals. This dialogue will bring together the combined resources of the U.S. government to engage with our Nigerian counterparts on issues including energy access, energy security, decarbonization, clean energy supply chains, and methane emissions reduction. Home to Africa’s largest democracy, population, and economy, Nigeria will play a key role in the global energy transition. The United States is committed to Nigeria’s success in achieving its energy and climate goals and looks forward to hosting the first Energy Security Dialogue in the coming year.”
Maintaining that the priorities set forth by the United States in Africa are not a one-sided endeavour, Stevens said they are a pledge to walk hand in hand with African nations towards a future of shared prosperity and mutual growth.”
“For so long, we have talked about supporting African solutions to African problems, but as we look at the massive challenges that confront us all, we are fully committed to working together to find African solutions to Global problems, ” he said.
